Switzerland & US Reaffirm Commitment to Fair Currency Practices
Switzerland and the US have issued a joint statement reaffirming their commitment to avoiding currency exchange manipulation. The statement, not legally binding, confirms existing practices of both countries and was issued amidst ongoing scrutiny of Switzerland's foreign exchange policies.
Switzerland has been under US watch since June due to its foreign exchange policies. The Swiss National Bank (SNB) has consistently denied manipulation, stating its interventions aim solely at maintaining price stability. In 2022, the SNB sold foreign currencies worth 22.3 billion Swiss francs.
The joint statement, issued by both countries' federal government entities, vows not to target exchange rates for competitive purposes. This includes macroprudential or capital flow measures. Both countries reconfirmed their commitment to avoid manipulating currency exchange rates under IMF Articles of Agreement. They also acknowledged that intervention in foreign exchange markets can be appropriate for addressing excessively volatile or disorderly currency exchange rates.
The joint statement is a reaffirmation of both countries' commitment to fair currency exchange practices. Switzerland, previously labeled a currency manipulator under the Trump administration, has pledged to keep its monetary policy focused on price stability. While the statement is not legally binding, it serves as a public declaration of their shared commitment to responsible currency management.
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